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Old 06-11-2005, 10:02 PM
James Boston James Boston is offline
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Join Date: Oct 2003
Location: Alabama
Posts: 314
Default Re: Biggest things you look for in a stock?

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I generally invest in small camp-mid cap stocks because my income isn't that great at my age

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There's nothing wrong with small-cap and mid-cap stocks, but don't preclude large-cap because of your income. The two really don't relate.

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looks for a company with little competition

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always a plus

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low p/e ratio

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Don't get trapped into thinking low P/E = good stock. It can mean that, but it doesn't automatically.

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a stock that isn't too overvalued

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I don't know if you listened to what I, and several other posters, told you about the book value hang up you had. I saw you continue to post that advice after having it explained to you that it wasn't a very important metric. I'll say it again though. If you're defining over-valued as "market cap < book value," you don't understand valuation. Free cash flow! Learn it, live it, love it.
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